View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
  2. Company news
March 27, 2017

SFC fines Merrill Lynch Asia entities for internal control lapses

The Securities and Futures Commission (SFC) of Hong Kong has reprimanded and fined Merrill Lynch Far East (MLFE) and Merrill Lynch Asia Pacific (MLAP) a combined amount of HK$15m ($1.93m) for internal control failures.

By Verdict Staff

The Securities and Futures Commission (SFC) of Hong Kong has reprimanded and fined Merrill Lynch Far East (MLFE) and Merrill Lynch Asia Pacific (MLAP) a combined amount of HK$15m ($1.93m) for internal control failures.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

The fine was imposed on the two entities following a review on their internal controls in the last quarter of 2016 associated with their reporting of large open positions (LOP), electronic trading systems, distribution of research reports involving futures contracts, and disclosure of market making activities in research reports.

The review unveiled that MLFE failed to ensure compliance with LOP reporting requirements in some cases since May 2006. The company also failed to implement formal governance for policies when the electronic trading regulations became effective on 1 January 2014.

In case of MLAP, the review revealed that the firm failed to comply with the requirement to secure a licence for regulated activities prior to conducting business on futures contracts between May 2005 and August 2016.

The firm also failed to disclose it was a market maker in the relevant securities in research reports distributed to clients between May 2011 and November 2016, the review report noted.

However, the regulator also said that the cooperation of both the entities in the matter helped expedite the disciplinary proceedings and resulted in a lower fine.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International